Class A office space absorption is on the rise in Miami-Dade and Broward counties, according to a newly released third quarter research report by commercial real estate firm JLL.
Overall office vacancy rates fell to an average of 12.9 percent in Miami, compared to 12.7 percent in Fort Lauderdale, the report shows.
Miami
The Coral Gables submarket saw the highest Class A absorption at 130,000 square feet, and the downtown Miami submarket saw the lowest with a negative 69,853 square feet year-to-date absorption.
In Miami, Class A rents increased 3.5 percent in the third quarter, year-over-year, to $42.75. The average overall asking rent in Miami is $37.36, with $31.03 for Class B, according to the report.
Some companies like Atkins Global have opted for smaller Class A space, underscoring a trend away from larger Class B spaces, JLL said in the report. In January, Cushman & Wakefield announced Atkins would move from its 93,000-square-foot Class B office space at 2001 Northwest 107th Avenue, to about 25,000 square feet of Class A office space at the recently completed 800 Waterford.
About 714,944 square feet of office space is under construction in Miami. Projects include MiamiCentral, Panorama Tower, and the office component of Wynwood 25 .
Fort Lauderdale
In Fort Lauderdale, Class A properties have seen the largest share of leasing activity. Year-to-date, deals totaling 233,600 square feet of Class A office space have been executed, with the majority at Las Olas properties.
Among suburban areas, Sawgrass Park’s Class A leasing activity accounts for 81.7 percent of the activity in that market year-to-date, while Class A leasing activity accounts for 77.3 percent of the total activity in the Plantation sub-market, according to the report.
The average office asking rent in Fort Lauderdale is $29.14, according to the report. Class A asking rent in Fort Lauderdale is $31.80 per square foot, compared to $25.88 per square foot for Class B space. About 27,388 square feet of office space is under construction in Fort Lauderdale, according to the report.